Abbey profits fall, despite selling more homes

abbey

Abbey New Homes reported a 7.7 percent fall in profit on Wednesday, after selling 606 homes in the 12 months to the 30th April.

Despite selling more homes than the previous year, pre-tax profit dropped to €58.6 million from €63.5m the previous year, with operating profits falling to €58.5 million from €60.8 million.

The group focused most of their efforts on the UK, selling 524 homes in the region, with , 75 sold in Ireland. The group reported a €197.8 million turnover and an operating profit of €54.3 million.

The group had previously been benefitting from strong margins, which declined over the period contributing to the lower than expected figures. Going forward, Abbey named production as a ‘high priority,’ adding that tight markets for labour and materials were a ‘significant’ constraint.

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The UK land bank was maintained in excess of 2,000 plots providing a firm foundation for a rise in output this year, the company added.

A dividend of 10 cents per share was proposed.